SCOPE 2: Emissions Overview

SCOPE 2: Emissions Overview

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SCOPE 2


Scope 2 emissions specifically refer to indirect GHG emissions associated with the purchase of electricity, steam, heating, and cooling. This GHG Protocol has provided the Scope 2 Guidance document for reference when an organization is looking to account for these emissions. The information below is a summary of the key points from that document. 


Detailed Information


The Scope 2 Guidance document elaborates on methodologies for calculating indirect GHG emissions from purchased energy. It emphasizes the importance of distinguishing between two types of Scope 2 emissions calculations.


Two types of scope 2 emissions:

  1. Location-based method: This approach uses grid averages to determine the GHG emissions intensity of the electricity consumed by the organization. It reflects the regional or national energy grid mix and is useful for understanding the broader impact of electricity use within a specific geographical context.
  2. Market-based method: This method accounts for GHG emissions based on the specific energy products that an organization purchases or the contracts it has for energy procurement. It allows organizations to claim the benefits of purchasing lower-carbon electricity, such as renewable energy certificates (RECs), and provides a more accurate reflection of the choices an organization makes regarding its electricity supply.

The document also underscores the necessity of transparency in reporting, urging organizations to disclose the approach used for Scope 2 calculations, the data sources, and any assumptions or limitations in the methodology. This transparency is crucial for stakeholders to understand the basis of the reported emissions and the efforts an organization is making to reduce its carbon footprint.

​An organization purchases electricity from a utility provider in a region where the energy mix is primarily coal-based, leading to high GHG emissions per unit of electricity generated. Using the location-based method, the organization's Scope 2 emissions would reflect the high carbon intensity of the regional grid. If the same organization also buys RECs from a wind farm to cover 100% of its electricity use, the market-based method would allow the organization to report lower Scope 2 emissions, reflecting the renewable energy purchase.

The Scope 2 Guidance is a critical tool for organizations committed to accurate and meaningful GHG reporting. By distinguishing between location-based and market-based methods, it offers flexibility in accounting for and reducing Scope 2 emissions, encouraging more sustainable energy procurement practices.


References and More Information


GHG Protocol: Offers a comprehensive set of tools for GHG emissions measurement and management. 
GHG Protocol Website - https://ghgprotocol.org/

EPA Green Power Partnership: A resource for understanding renewable energy certificates and green power purchasing. EPA Green Power Partnership - https://www.epa.gov/greenpower



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